Springfield School Board OKs preliminary budget

By SUSAN L. SERBIN

Saturday, February 16, 2013

SPRINGFIELD -- The school board approved the proposed preliminary 2013-14 budget of $68.8 million with an increase of 3.37 percent in the tax rate. Executive Director Don Mooney referred to this first part of a long approval process as "the worst case picture." He said the goal in the next several months was to "work down" from that calculation.

At this stage, somewhat likely to be altered, taxes for the median assessed value of $145,890 will be 29.698 mills, an increase just less than 1 mill. That amount would be $4,333.

Mooney and Christopher Wilson, Manager of Financial Reporting, went through the expenditures and revenues. They particularly noted that figures were based on the current subsidies for basic and special education despite some indication that Gov. Tom Corbett's state budget may provide subsidy increases.

Compensation and benefits costs, not including retirement, are anticipated to increase by $887,000. The key driver in the overall $3 million increase from the current year is the district's mandated contribution to the Public School Employees' Retirement System (PSERS). It is projected to increase $1.4 million, or 37 percent, from 12.36 to 16.93 percent. Corbett has suggested cutting the percentage increase essentially in half. Springfield School Director Doug Carney called this "kicking the can down the road," since it is an existing obligation to retirees.

The district recognized the PSERS spike years ago, and has been setting aside a fund balance for this purpose now about $3.5 million.

"We plan to spend down the PSERS reserve so that we can gradually smooth out the impact for taxpayers," said Carney, chair of the finance committee.

Of the total $68.8 million, 45 percent is salaries and benefits. Almost every other category of managed costs e.g. purchased professional services, supplies, property and other purchased services, are close to the current budgeted figures, and, in some cases, marginally less. Mooney thanked building administrators and the central office for managing expenses.

The next step is a March 7 filing with PDE for approval of the requested exceptions for portions of PSERS and Special Education. This will enable the district to keep tax increases within the 1.70 percent index cap.